The Observatory · Case 41 · Public programs · 1939 to 2026

Food Stamp Program / SNAP (United States, 1939 to 2026)

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Sources checked 2026-10-19 · Preliminary research, not a final verdict
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Congress made food stamps a permanent national program in 1964, and it grew into the country's largest food aid program, with measured benefits for food security and child outcomes alongside long-running disputes over payment errors, fraud, work rules and who is left out.

In brief

Food stamps began in 1939 as a way to move farm surplus and ended in 1943. After pilots in 1961, Congress made the program permanent in the Food Stamp Act of 1964. Early on, states and counties chose whether to take part, families had to buy their stamps, and participation fell in counties that switched from free commodities. Congress required nationwide coverage by 1974 and ended the purchase requirement in 1977. Participation reached 47.6 million in 2013. Research using the county by county rollout suggests that children with early access had better adult health and, for women, better economic outcomes. Surveys, however, miss nearly half of recipients in linked data, which shifts estimates of the program's effect. Payment errors, disputed fraud estimates and work rules remain in dispute, and a 2025 law shifts part of the cost to states. The record shows the rules were set by public law, but who was reached depended on local choices, data limits and later amendments.

The record

Origins and the 1964 law

  • The first food stamp plan ran from 1939 to spring 1943. It used orange stamps for any food and blue stamps for surplus food. It peaked at 4 million participants and cost $262 million, according to USDA's Food and Nutrition Service (FNS). (FNS history; opened)
  • Its purpose was farm support as much as hunger relief. A University of Wisconsin summary says the 1935 Potato Control Act started food assistance with the main aim of removing surplus farm goods and supporting prices, which is why the Department of Agriculture still runs the program. (Institute for Research on Poverty, Focus, food stamp history; opened)
  • President John F. Kennedy announced pilot programs on February 2, 1961. The first recipients were in West Virginia on May 29, 1961. By January 1964, pilots covered 43 areas in 22 states and 380,000 people. (FNS history)
  • The Food Stamp Act of 1964 (Public Law 88-525, 78 Stat. 703) made the program permanent and put it under congressional control. It required state plans, purchase requirements and nondiscrimination. First-year funding was capped at $75 million. FNS notes the administration expected 4 million participants at $360 million a year. (FNS history; Statutes at Large, 78 Stat. 703, opened through a summarizing tool, not read in full)
  • Under the 1964 design, households paid part of the face value of their stamps. The purchase requirement was a cost barrier. The Wisconsin summary adds that states decided whether to take part locally, and that counties switching from commodity distribution to stamps saw participation fall by about 40% on average. (IRP Focus)
  • Members of Congress named by secondary sources as backers of the 1964 law include Representative Leonor Sullivan of Missouri (Wikipedia) and farm-state members George McGovern and Robert Dole (JSTOR Daily). The Agriculture Secretary who submitted the bill was Orville Freeman (Wikipedia). (Wikipedia, SNAP; JSTOR Daily; both opened)

Timeline

Date Event Source
1939 to 1943 First Food Stamp Plan; peak 4 million people FNS history
Feb. 2, 1961 Kennedy announces pilots FNS history
Aug. 31, 1964 Food Stamp Act signed as P.L. 88-525 (date from the public law number; signing date not checked) Statutes at Large
1967 to 1968 Senate subcommittee visits the Mississippi Delta; Hunger U.S.A. report and a CBS special draw public attention IRP Focus
1971 P.L. 91-671 sets national eligibility standards and caps purchase at 30% of income FNS history
1973 to 1974 Law requires all counties to join by July 1, 1974; federal share of state administrative costs set at 50% FNS history
1977 (effective Jan. 1, 1979) Purchase requirement eliminated; participation rises by about 1.5 million that month FNS history; Wikipedia
1996 Welfare reform law (P.L. 104-193): limits for able-bodied adults without dependents (3 months in 36 unless working), most legal immigrants cut off, states must adopt electronic benefits by 2002 FNS history; Wikipedia
2004 All states run electronic benefit transfer; FNS says trafficking fell from nearly 4% in the 1990s to about 1% FNS history
2008 Program renamed SNAP (Oct. 1, 2008) FNS history
2009 to 2013 Recovery Act benefit increase FNS history
2013 Participation peak of 47.6 million (fiscal year) Wikipedia
2023 Debt ceiling law changes work rule coverage, effective Sept. 1, 2023 Brookings
2025 2025 reconciliation law (One Big Beautiful Bill Act) changes work rules, immigrant eligibility and state cost shares; state share of benefit costs from Oct. 1, 2027 NCSL; FNS history note

Size and cost

Item Figure Source
Participants, April 1965 561,261 FNS history
Participants, 1994 27.5 million (FNS) or 28 million (Wikipedia) FNS history; Wikipedia
Participants, 2013 47.6 million Wikipedia
Participants, recent about 42 million a month (Brookings, 2025); Wikipedia reports a fall to 36.6 million by May 2026 Brookings; Wikipedia
Benefit cost, fiscal 2025 about $95.8 billion, total cost about $102.6 billion Wikipedia (not checked against USDA)
Participation among eligible people, FY2022 88%, the highest in the estimate series FNS
Estimated 10 year federal savings from 2025 law $287 billion CBO figure as quoted by NCSL

Outcomes research

  • Hoynes, Schanzenbach and Almond used the county by county rollout from 1961 to 1975. Adults who had access to food stamps from conception to about age 5 had a lower metabolic syndrome index (about 0.3 standard deviations among low education families) and, for women, higher economic self-sufficiency. The authors note the estimates are intent to treat, rollout timing was partly political, health measures are self-reported, and the paper was a working paper. (NBER Working Paper 18535; opened)
  • USDA's Economic Research Service (ERS) report ERR-355 by Christian Gregory and Kegan O'Connor links administrative SNAP records from 19 states to the Current Population Survey Food Security Supplement, 2017 to 2019. It finds 47.3% of SNAP participants did not report receipt in the survey. It finds SNAP lowers food insecurity, but the estimated effect is 38.4% using survey answers alone versus 24.4% with administrative records. The study covers only 19 states and three years. (ERS publication page; ERS report summary; both opened; full report not read)
  • Meyer, Mok and Sullivan found that surveys miss a large share of food stamp dollars: about 20% in the PSID and SIPP and about 40% in the CPS, CE Survey and ACS. (Meyer, Mok and Sullivan, 2015; opened)

Errors and fraud: disputed measures

Measure Figure Source and note
National payment error rate, FY1999 9.86% Wikipedia citing GAO (not checked)
FY2009 4.36% Wikipedia citing GAO (not checked)
FY2024 10.93% (9.26% overpayments, 1.67% underpayments) News report on USDA data (KTVU). FNS page opened; its figures sit in PDFs not opened
Trafficking, first FNS study 13.0% of benefits FNS extent of trafficking page
Trafficking, latest study cited by FNS 1.3% FNS page (period not stated there)
Trafficking, plausible range 2012 to 2014 $960 million to $4.7 billion a year; FNS point estimate about $1 billion GAO-19-167 (as summarized on GAO's page)
  • The error rate counts both overpayments and underpayments and is a caseload weighted average of state rates. It measures mistakes in eligibility and benefit amounts. It does not by itself measure intentional fraud. (FNS payment error page; opened)
  • GAO found FNS's trafficking estimates rest on an assumption set in the 1990s that 90% of benefits redeemed at small trafficking stores and 40% at large ones were trafficked, never validated. GAO says the true amount is uncertain. (GAO-19-167; opened)

What this case shows

  1. Congress set the rules in public law. The 1964 act, the 1971 national standards, the 1977 end of the purchase requirement and the 1996 and 2025 changes are all statutes with recorded votes. Ordinary people could read the rules and vote on them. The thesis question is who was left out of the room where states and counties chose how to run it.
  2. Local choice created gaps. Because states and counties could decide whether and how to join until 1974, access depended on where a family lived. The Wisconsin summary reports a 40% average drop in participation when counties switched from free commodities to stamps. (IRP Focus)
  3. Exposure to the program left a measurable mark. The rollout study gives a rare design for judging long run effects, and shows why timing and place of a program matter. (NBER 18535)
  4. What people can know depends on the data. Survey answers miss about half of SNAP receipt in the CPS linked data. A public that relies on surveys may overstate or understate the program's effect. The ERS result shows the effect is positive but smaller than survey only studies suggest. (ERS)
  5. Costs fall on several payers. Taxpayers fund benefits. Starting in fiscal 2028 under the 2025 law, states pay part of benefit costs based on error rates, and people subject to work and immigrant rules bear the effect of lost benefits. (NCSL)

The strongest objections, and our answers

  1. Objection: Error and fraud waste public money. The FY2024 error rate of 10.93% is high, and trafficking estimates have ranged widely. Mitigation: We show both. Most error is overpayment from caseworker or household mistakes, not proven fraud; FNS says trafficking fell after electronic cards; GAO says the estimates are uncertain. We do not state a fraud total as fact.
  2. Objection: Work requirements are needed to protect work incentives. AEI's Angela Rachidi argues benefits can reduce work and that requirements counter this, while the evidence on employment is mixed. Brookings authors Lauren Bauer and Chloe East conclude "the best evidence shows work requirements do not increase employment" and cut participation a lot. Mitigation: Both sides agree requirements reduce participation. They disagree on employment effects. We report both and did not open the underlying studies. (AEI; Brookings; both opened as summaries)
  3. Objection: The long run health findings are not proof. The paper is an NBER working paper using self reported data, and rollout was not random. Mitigation: We call it suggestive evidence and list the authors' own limits. The published journal version was not opened.
  4. Objection: Evidence on nutrition gains is weak. The IRP summary reports that recipients' food consumption was not notably different from similar nonrecipients in some studies. Mitigation: We include that and treat food security and nutrition quality as different questions.
  5. Objection: The program is mainly a farm subsidy or a welfare entitlement. Both framings appear in the record: farm surplus roots and anti-poverty goals. Mitigation: We state both origins and take no side on its purpose.

Open questions: what would change our minds

  • The full text of P.L. 88-525 was read only through a summarizing tool. Exact phrases in the declaration of policy are unverified.
  • The signing date of the 1964 act was not confirmed from a primary source.
  • FY2024 and FY2025 payment error rates come from a news report and the FNS page that links PDFs we did not open.
  • The 1.3% trafficking rate and its period were not confirmed in the FNS report itself.
  • The full ERR-355 report and the published American Economic Review version of the rollout study were not read.
  • We did not open studies behind the work requirement claims on either side.
  • The 2025 law details (work rule ages, immigrant eligibility, administrative cost share, effective dates other than Oct. 1, 2027) are from secondary sources and need the statute text.
  • Participation and cost figures for 2025 and 2026 come from Wikipedia and are unchecked against USDA data.
  • Whether the 1960s county participation drop of 40% holds in primary evaluations is unverified.

Sources

Title Publisher URL Supports Opened?
SNAP history USDA FNS https://www.fna.usda.gov/snap/history Timeline, laws, participation Yes
Food Stamp Act of 1964, 78 Stat. 703 GovInfo https://www.govinfo.gov/link/statute/78/703 Statute (primary) Yes, through summary only
Supplemental Nutrition Assistance Program Wikipedia https://en.wikipedia.org/wiki/Supplemental_Nutrition_Assistance_Program Background, figures, names Yes
What the History of Food Stamps Reveals JSTOR Daily https://daily.jstor.org/what-the-history-of-food-stamps-reveals/ Politics, history Yes
Food stamp history Institute for Research on Poverty, Univ. of Wisconsin https://www.irp.wisc.edu/publications/focus/pdfs/foc22a.pdf County switch, purchase requirement Yes
Long Run Impacts of Childhood Access to the Safety Net (NBER WP 18535) NBER https://www.nber.org/system/files/working_papers/w18535/w18535.pdf Rollout study Yes
The SNAP and Food Security: Insights From Administrative Records (ERR-355) USDA ERS https://ers.usda.gov/publications/115069 Misreporting Yes
ERR-355 report summary USDA ERS https://ers.usda.gov/media/29327/err-355-report-summary.pdf 47.3%, 38.4% vs 24.4% Yes
Under-Reporting of Transfers in Household Surveys Meyer, Mok, Sullivan https://harris.uchicago.edu/files/underreporting.pdf Survey underreporting Yes
Payment error rates USDA FNS https://www.fna.usda.gov/snap/qc/per Definition of error rate Yes, no rates shown
SNAP overpayment and underpayment rates KTVU https://www.ktvu.com/news/snap-quality-control-system-identifies-both-underpayments-overpayments FY2024 10.93% Yes
GAO-19-167, SNAP retailer trafficking GAO https://gao.gov/products/gao-19-167 Trafficking uncertainty Yes
Extent of trafficking USDA FNS https://www.fna.usda.gov/research/snap/extent-trafficking 13.0%, 1.3% Yes, partial
Participation rates FY2020 and FY2022 USDA FNS https://www.fna.usda.gov/research/snap/national-participation-rates/fy20and22 88% Yes
A Primer on SNAP Work Requirements (April 2025) Brookings https://www.brookings.edu/articles/a-primer-on-snap-work-requirements-april-2025 Work rule evidence Yes
SNAP and Employment: What Is the Evidence? AEI https://cosm.aei.org/snap-and-employment-what-is-the-evidence/ Opposing view Yes
States Brace for SNAP Cost Shifts NCSL https://www.ncsl.org/resources/details/States-Brace-for-SNAP-Cost-Shifts 2025 law cost shares Yes

Found an error or a better source? We keep every correction on the record with its date and reason. Nothing here is quietly rewritten.

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